How Is A 401(k) Advisor Compensated?
An advisor can either be paid from fees charged directly to the plan participants or plan sponsor, or from a portion of the investment management or servicing fee built into the pricing structure of a packaged product. In some cases, a combination of the methods may be used. You should expect your advisor to explain in detail how he or she gets paid and what functions will be performed to earn that compensation.
The real consulting firms charge only fees. How can you be an objective consultant if you get paid by the provider?
The fact is many consulting firms do get paid by providers, and high-end consultants may be worth every penny in complex or problem situations. However, they may also be prone to overstate the complexity to warrant their expertise and high fees. We have access to the same high-level consulting expertise, but you will only pay for it if necessary.
What about fees and expenses? Aren’t the fees higher if we use an advisor?
The fee structures in 401(k) arrangements can be very complex; however, like many other products and services, you often get what you pay for. There are certain providers that compete based on price and market their services directly to plan sponsors as avoiding the unnecessary cost of an advisor. Such an arrangement typically works only if the plan sponsor dedicates someone on the company payroll to certain 401(k) functions…or the plan accepts less service. Another aspect of cost is investment management. Again, certain providers compete on cost, but cheapest is rarely the best choice. We will provide you with all the information you will need to evaluate the costs of different providers.
Is online advice for 401(k) participants going to make personal contact with an advisor obsolete?
Just the opposite. Expert, knowledgeable 401(k) advisors embrace technology as a tool to help fulfill the role of advisor more effectively. We’ll be glad to discuss the different ways we use
An Independent 401(k) Advisor Can Make Your Life Easier
When you enlist our services, you gain a valuable ally and time-saving resource who will help you develop and maintain a solid strategy for your retirement plan. Plus, you will receive personalized attention and involvement at the level you want and need. Our goal is a win-win 401(k) relationship. This relationship will be meaningful only if we maintain it over the long term by focusing on your needs, continually meeting your expectations and making you an advocate of our valuable 401(k) advisory services.
